Question: The data for this exercise come from De Veaux and Velleman, Business Stats, page 537 and are for the attendance at shows on Broadway, weekly, between 2006 and 2008 . The variables are:

Attendance: paid attendance, ' 000 Shows: Number of shows on Broadway that week Price: Average ticket price. STATA was used to analyse the data; output is included after the questions. Use this output to answer the following questions. First, use the regression that uses the original variables (not the log variables)

1. Interpret the coefficient on Shows.
2. Test the hypothesis that the coefficient on shows is double the coefficient on price, making sure that you write down the answer completely by including the hypotheses, any working or reasoning and a clear conclusion.
3. Now test the significance of the whole equation by following the steps below:

1. Write down the hypotheses.
2. Explain in your own words what the alternative hypothesis means.
3. Write down the p-value from STATA.
4. Use the \(p\) -value to state whether you retain or reject Ho.
5. Interpret what this conclusion means [1 mark] Now use the log-log model.

d) Interpret the coefficient on logshows in this model.

e) Can you say which of the two models you prefer? Explain your answer. State 2 other things you would like to see in order to help decide this. [4 marks]

Price: $2.99

Solution: The downloadable solution consists of 4 pages
Deliverable: Word Document